ARHA NOW Vol. 4 Issue #3

ARHANOW

THE OFFICIAL MAGAZINE OF THE ALABAMA RESTAURANT & HOSPITALITY ALLIANCE

Taking a Pro-Active

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VOLUME 4 ISSUE #3

PRSRT STD US POSTAGE

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CARLE PLACE, NY PERMIT NO 35

APPROACH TO THE ADA

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INSIDE. REGIONAL RECAP

Bartender 2 0 1 5

COMPETITION

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ARHANOW THE OFFICIAL MAGAZINE OF THE ALABAMA RESTAURANT & HOSPITALITY ALLIANCE

phone: 334.244.1320 fax: 334.244.9800 61B Market Place Montgomery, AL 36117

FROM THE PRESIDENT

BARTENDER OF THE YEAR REGIONAL RECAP

ARHA HAPPENINGS

ARHAF SCHOLARSHIP RECIPIENTS

UNITED HEALTHCARE OPTIONS

EMV AND RESTAURANTS

OUTBACK KANGAROO CLASSIC

2016 PROSTART® SPONSORSHIP

WELCOME NEW MEMBERS

www.arhaonline.com

MINDY HANAN President & CEO ALISON INGLE Director of Communications LISA LOTT Director of Administration & Special Events SHEA PERKINS Director of Member Relations SUSAN STARR Director of Education

SEPTEMBER 28 • SHERATON BIRMINGHAM

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from the

PRESIDENT

MINDY HANAN

industry’s trade associations. We have seen an onslaught of rulings, regulations and legislation that will have damaging consequences to the hospitality industry. Most of our elected officials put forth legislation they believe will be helpful. However, many of these measures have unintended consequences.

President & CEO, ARHA

ur 16th Annual Stars of the Industry awards dinner will take place on September 28 at the Sheraton Birmingham Hotel. To kick off this fabulous event, we have held six regional bartender contests throughout the state. We have narrowed the field down to six deserving contestants who will vie for $1,500 cash prize during the reception, the coveted Bartender of the Year Trophy and bragging rights to say they are the best of best. The Stars of the Industry Dinner is an event you will not want to miss. We will celebrate our industry’s best and brightest. Please make plans to attend the event. Tickets may be purchased online at our website ARHAonline.com. On Tuesday morning following the dinner, we will hold our 2nd Annual Grand Pineapple Golf Challenge at the Oxmoor Valley Robert Trent Jones golf course. This is a great event with prize opportunities for players at all levels. The proceeds from the event will go to benefit the ARHA Foundation. It will be a great time of fun and fellowship. There has never been a more important time to be involved in the

One such example would be the American’s with Disabilities Act which just celebrated its 25-year anniversary. This is a law with a very noble purpose. However, many plaintiffs’ attorneys have found this as a new line of business to supplement their income. In this issue of ARHANow, Graham Sisson, the Governor’s Advisor on Disabilities provides resources your business can use to learn how to comply with the ADA regulations so that your business can better serve the disabled community and does not become a target of these opportunistic attorneys. We also have many ADA resources available online in the ARHA Member Portal. Please be aware no business, regardless of the age of your building, is “grandfathered” with regard to the ADA regulations. All businesses must comply—it is only a matter of which regulations apply to your business. Recently, over 30 businesses in the Baldwin County area received demand letters that were drafted to look similar to a legal complaint. We have put sample copies of these in the members’ only section of the website so that you can be aware of the types of violations that make your business vulnerable to such action.

Another example of well-intended public officials taking action would be the recent change to minimum wage in Birmingham. Small business owners are overrun with more regulations than we can handle. Add to that, a business owner now has multiple minimum wages to keep up with and multiple tip-credits. We don’t yet know what the net effect this will have on the businesses in Birmingham, but the experience in other parts of the country thus far has not been overly positive. Since the time Seattle raised their minimum wage, restaurant closings have outpaced the national average. In addition, many low wage workers have asked to have their hours cut because while the higher minimum wage does not bring them out of poverty, it does make them ineligible for government assistance. We are working with other allied business associations to pass legislation in the upcoming special session that will preempt local municipalities from passing a local minimum wage. We will keep you up to date on these developments. On the federal level we also have the National Labor Relations Board decision which will have broad repercussions for the business world, particularly for franchise companies. The NLRB is seeking to hold both companies responsible as joint employers, because they “share or codetermine those matters governing the essential terms and conditions of employment.” The entire franchiser and franchisee contractual relationships are now in jeopardy as the potential ramifications of

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from the PRESIDENT

CONTINUED

Additionally, the U.S. Department of Laborâ&#x20AC;&#x2122;s new proposed overtime standard are onerous. The DOL issued proposal would dramatically alter the white collar exemptions for overtime pay under the Fair Labor Standards Act. It greatly limit flexibility and unnecessarily increase costs for businesses across the country. The regulation in its current form would more than double the salary for an employee to be exempt. This regulation is simply unworkable. As we face these challenges, please rest assured that ARHA, the National Restaurant Association and the American Hotel and Lodging Association are all working together on your behalf. We will work to defeat, minimize or find solutions to help you cope with challenges the industry faces. One such solution is the new health

insurance program from UnitedHealthcare. Please see the information regarding the program in this issue of the magazine or you may contact Kimberlee Vandervoom at (301) 865-7058 for more information. In closing, I would like to invite more of our members to be engaged at a higher level. We are always looking for great candidates for our Board of Directors. If you are interested in serving on the Board or know of someone you think should be considered please drop me an email. Thank you for your membership. Please let us know how we can be of service to you.

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REGIONAL COMPETITION RECAP The 2015 ARHA Bartender of the Year regional competitions were a huge hit across the state! Guests cheered on 27 of the stateâ&#x20AC;&#x2122;s best bartenders as they competed to create the most delicious Old Forrester cocktail...but taste is just the beginning. Contestants were judged on taste, accuracy, and showmanship, their crowd interaction, and speed at which they created these concoctions. Prior to the competition, contestants were sent a list of 10 cocktail recipes using the featured spirit to memorize. On the day of the event, the contestants drew three random cocktails from that list and had 10 minutes to prepare the cocktails plus a customized signature drink of their own using one or more of the featured spirits. Contestants also took a written test.

PLEASE DRINK RESPONSIBLY

Winners of each regional contest received $200 and an invitation to the State Bartender of the Year competition scheduled Sept. 28 in Birmingham at the Stars of the Industry awards dinner. ARHA would like to thank our sponsors Old Forrester (Brown-Forman) and Sculpture Hospitality (Bevinco and Bevcheck). Also, we sincerely appreicate our venue hosts in each region. We would like to extend our thanks to the Convention and Visitors Bureaus in Birmingham, Huntsville, Dothan, Auburn, Gulf Shores and Montgomery. Regional competitions were held Aug. 17 in Birmingham at Todd English P.U.B., Aug. 18 at The Hotel at Auburn University, Aug. 20 in Dothan at Chill Lounge, Aug. 24 in Huntsville at the Westin Hotel, Aug. 26 in Montgomery at Eastside Grille, and Aug. 31 in Gulf Shores at LuLuâ&#x20AC;&#x2122;s.

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BIRMINGHAM | AUGUST 17

AUBURN | AUGUST 18

@ TODD ENGLISH P.U.B

@ THE HOTEL AT AUBURN UNIVERSITY

1ST PLACE: JOSHUA WOODWARD (APPLEBEE’S)

1ST PLACE: JEFF MEYERS (LONGHORN STEAKHOUSE)

DOTHAN | AUGUST 20

HUNTSVILLE | AUGUST 24

@ CHILL LOUNGE

@ THE WESTIN HOTEL

1ST PLACE: JOSH EVERETT

1ST PLACE: AKINDE OLAGUNDOYE (THE BOTTLE)

MONTGOMERY | AUGUST 26

GULF COAST | AUGUST 31

@ EASTSIDE GRILLE

@ LULU’S GULF SHORES

1ST PLACE: JEAN GRESHAM (CENTRAL)

1ST PLACE: TREA MELVILLE (LULU’S)

ARHANOW DISH BY CHEF BRANDON BURLESON

ARHA Happenings

Phelps, Jenkins, Gibson & Fowler, L.L.P recently spoke at a human resources seminar held in Tuscaloosa. Pictured left to right is Tuscaloosa Tourism & Sports staff, Gary McKee with The Levee Bar and Grill and Mindy Hanan with ARHA.

Everyone had a great time at the Auburn Bartender of the Year regional competition. Pictured left to right: ARHA Board Chairman Brandt Tucker (Willie’s Wings, Auburn), ARHA President & CEO Mindy Hanan, Auburn Regional Winner Jeff Myers (Longhorn Steakhouse, Opelika) and ARHA Membership Director Shea Perkins.

ARHA held a “Train the Trainer” course in July to provide teachers with the best practices, tools and techniques essential to teaching food safety courses.

ARHA members Rakesh Patel and Toby Wilson at the seminar in Tuscaloosa.

ARHA staff Alison Ingle and Shea Perkins at the Outback Steakhouse Kangaroo Classic charity softball tournament in Montgomery.

The gang from Central restaurant in Montgomery at the Montgomery Bartender of the Year competition. Pictured L to R: Chef Randal Gresham, Jean Gresham and Ashley Jernigan.

In their own words:

Why choose UnitedHealthcare?

Exclusive health care pricing and solutions for ARHA members from UnitedHealthcare Together, the Alabama Restaurant & Hospitality Alliance (ARHA) and UnitedHealthcare offer special advantages for your business: } Health care reform guidance and solutions around the Affordable Care Act } Exclusive savings on standard group medical plans and specialty benefits } Wellness programs and services } Bilingual resources for Hispanic/Latino owners, operators and employees Find out what the ARHA and UnitedHealthcare can do for your business, and why others in the hospitality industry are choosing UnitedHealthcare for their health care solutions. Contact your broker, the ARHA or Kimberlee Vandervoorn at (301) 865-7058 or kvandervoorn@uhg.com.

“When it comes to the field of health care, we live in unprecedented times. Both the regulatory and business landscapes are shrouded by a dense fog of uncertainty. What’s more, when plotting a course for success over this rough terrain, a knowledgeable and trustworthy guide is a virtual necessity. At Firehouse Subs, we concluded long ago that the best course of action was to turn a negative into a positive. We took a leadership position in assessing the impact of the Affordable Care Act (ACA) and devised a course of action that we believe will help us achieve our business goals of growing sales and improving profitability. We felt so confident in our chosen course that we implemented the offer of qualifying insurance coverage for our hourly employees in 2014 (choosing not to take advantage of the one-year delay granted by the Obama administration). During our many months of studying the ACA and formulating our plan, the support we received from the team at UnitedHealthcare was invaluable. UnitedHealthcare stood side by side with us to help us understand the ever-shifting tenets of the ACA; they were our “go-to” resource. From beginning to end, they differentiated themselves from their competitors by demonstrating their desire to understand the needs of our business. And along the way, they helped us educate our franchise community and arm them with the knowledge they need to make a quality decision about their own path. And finally, as we moved toward the finish line of finalizing the products we would offer our employees, they proved themselves to be a superior choice in the marketplace. I highly recommend UnitedHealthcare for any business seeking a valued partner in today’s challenging business environment.” Don Fox, Chief Executive Officer Firehouse of America, LLC (dba Firehouse Subs), Jacksonville, Florida UnitedHealthcare customer

©2015 United HealthCare Services, Inc. Insurance coverage provided by UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through a UnitedHealthcare company. 8/15 UHCAL752782-000

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KIRK KIRKLAND MEMORIAL SCHOLARSHIP RECIPIENTS Announced for 2015 The Kirk Kirkland Memorial Scholarship provides Alabama students with the opportunity to further their education in the restaurant and lodging industry. The Alabama Restaurant and Hospitality Alliance Foundation (ARHAF) presented scholarships to three students to be used for the 2015/2016 academic year as they pursue degrees in Culinary Arts and Hospitality Management. Students were evaluated on their desire to pursue a career in this industry, academic achievement and leadership qualities.

KATHERINE BLAEDOW Katherine is a senior at Auburn University studying Hotel and Restaurant Managment. She works part-time at the Arricia Italian Restaurant located in The Hotel at Auburn University and even plans to study abroad in Arriccia, Italy in 2016. Earlier this year, Katherine took part in the 11th annual Epicurean Tour of Northern California and also volunteered to pour wine at the High Museum Wine Auciton in Atlanta, Georgia. Her goals include becoming a Certified Wine Sommelier by age 25 and wants to be a winemaker in either California or a foreign country. “I have a strong dedication to this industry. I love what I do and cannot wait to assume more roles,” Katherine said. “I am extremely dedicated and have a strong work eithic. I know that I will be a leading professional in this industry.”

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YANNA JOHNSON Yanna is enrolled at The University of Alabama in Nutrition and Hospitality Management with a concentration in Restaurant/Food and Beverage. She also works at a local hotel to help pay for her tuition. Yanna completed her first two years of college at Shelton State Community College on an Ambassador Scholarship. Her family insisted on helping her pursue her dreams. “I have a deep passion for this industry,” said Yanna and “would like to manage a hotel or own her own bakery one day.”

JOY PHILLIPS Joy will be a sophomore at Jefferson State Community College in Birmingham pursuing an Associates degree in baking and pastry, where she also serves as Vice-President of the Culinary Explorers. Upon completion, Joy plans to also pursue a Bachelor’s degree in Business Communications. Her ultimate goal is to not only own a bakery and coffee shop that caters for weddings and events, but to start a non-profit orgnization to teach disadvantaged students important cooking and leadership skills to better prepare them for the culinary industry. “I am passionate about learning and growing in the culinary and hospitality industry,” Joy said. I want to use my knowledge to teach and train other aspiring culinarians, and give them the opportunity to pursue their goals and dreams.”

2016 SCHOLARSHIP DEADLINE:

Applications must be postmarked by December 1, 2015. VISIT ARHAONLINE.COM TO LEARN MORE.

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SWIMMING INSTEAD OF SINKING: Taking a Pro-Active Approach to the American Disabilities Act By Graham L. Sisson, Jr., Director-Governor’s Office on Disability, Assistant Attorney General and State ADA Coordinator

THE PROBLEM OR ISSUES For the last several years, there have been numerous lawsuits against small businesses for Americans with Disabilities Act (ADA) violations. Many are called “drive by” lawsuits since the party suing drives by the business solely to check for ADA barriers without accessing any services. Unfortunately, many businesses may have taken a wait and see approach to ADA compliance. In Alabama, average attorney fees in these ADA cases range from $3000 to $7500. This is money that could have been spent on expenditures to improve accessibility. Private businesses may have unintentionally increased their legal exposure for ADA violations due to popular misconceptions. For example, many believe that advance notice was required prior to being sued and believe that issuance of building permits or certificates of occupancy by local building authorities meant they complied with the ADA. Likewise, many businesses in operation before the ADA believe they are grandfathered. Finally, a few businesses reason that the lack of any complaints by a few customers with disabilities or a total absence of complaints (prior to litigation) meant they were ADA compliant i.e., “I have been in business 20 years, and I have never had a complaint”. There is a trend for many complaints to come from out-of-state visitors with disabilities who live in states that have laws that are more stringent than the ADA. When these tourists come to Alabama, they may be irritated at what they see as a lack of ADA compliance as compared to their home state. A combination of these factors has arguably led to mounting legal liability for violations of Title III of the ADA, making a “wait and see approach” very costly in many instances. Many small businesses settle a case for attorney fees and required ADA changes rather than bear the higher cost of their attorney fees and facility modifications. Generally, a litigant only has to win one legal issue to obtain attorney fees as a prevailing party. Typical barriers that may lead to a court’s awarding of legal fees are a lack of lever handles on lavatory sinks, accessible parking that is too narrow, inaccessible door handles, mirrors, towels, and soap dispensers that are too high, ramps that are too steep, lack

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of grab bars, and bathroom stalls that are too narrow, among others.

Resources

ADA TITLE III REQUIREMENTS Title III of the ADA covers all places of public accommodation, which do not include private clubs or churches. Places of public accommodation include 12 categories, which are exhaustive, but not the examples of them. The 12 categories include the following: stores, restaurants, bars, service establishments, theaters, hotels, recreational facilities, private museums and schools, doctors’ and dentists’ offices, shopping malls, and other businesses. Regardless of the age of the facility or building or the number of employees, all businesses within the 12 categories are covered by the ADA. Although there is no grandfathering under Title III, there is a difference in accessibility requirements for existing and newly constructed and altered facilities. Existing facilities are those that were built prior to January 26, 1992. New construction includes buildings that are built on or after January 26, 1992 with first occupancy after January 26, 1993. Businesses are required to make readily achievable changes to existing facilities. “Readily achievable” means easily accomplishable and without much difficulty or expense. Adding an elevator or moving a wall are not readily achievable, whereas re-striping the parking lot to add accessible parking, adding grab bars in the bathroom or adding signage are readily achievable. Buildings that are newly constructed or significantly altered have to meet the highest standards under either the 1991 ADA Accessibility Guidelines (ADAAG) (if built or altered before March 15, 2012) or the 2010 Accessible Design Standards (post March 15, 2012). Businesses that meet the 1991 ADAAG are safe harbored for elements that were covered by that standard. Businesses should also be aware of temporary barriers that block access for persons with disabilities. For example, an outdoor cigarette ashtray or a newspaper stand that blocks a sidewalk could be legally actionable under the ADA. Similarly, a trash can that is placed next to the wide side of an accessible toilet would be a barrier to wheelchair users who make a side-to-side transfer to get on the commode. I have even seen a plant placed in this area. Businesses should also review any policies to make sure that they do not discriminate against people with disabilities. For example, a check cashing policy that only allows a valid driver’s license as proof of identification would need to be modified to permit other documents like a non-driver’s ID. No pets policies should not be enforced to disallow use of service animals.

MEMBER BENEFIT

SOLUTIONS Businesses should be proactive and survey their facility to identify barriers. Alabama has a toll free hotline (800-205-9986) for information on rights and responsibilities under the ADA. This hotline within the Alabama Department of Rehabilitation Services (ADRS) can provide free non-binding accessibility surveys and ADA information including business surveys as well as training and Department of Justice (DOJ) publications on ADA compliance for small businesses. The Alabama Governor’s Office on Disability (GOOD) (334-293-7228) also provides information on available resources and other entities that may be able to assist businesses without charge. Neither ADRS nor GOOD enforce the ADA. The DOJ is the entity charged with enforcing Title III of the ADA.

Publications •

ADA Update: A Primer for Small Businesses

•

2010 Accessible Design Standards

Websites •

www.ada.gov

•

www.adata.org

•

www.access-board.gov

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www.ada.gov/regs2010/ADAregs2010.htm (revised ADA regulations)

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www.ada.gov/2010ADAstandards_index.htm (2010 Standards)

•

www.adahospitality.org/at-your-service (Hospitality video)

CONCLUSION Good access is not only good business that increases the customer base, but it is also solid risk management that reduces ADA legal exposure. Businesses should take a proactive response to ADA requirements by reviewing their facility to identify barriers. Once barriers are identified, they should implement a timely plan to remove them. Free resources are available from the ADA Hotline and the Governor’s Office on Disability. Persons with disabilities are good customers who want to access your business and purchase your services.

LOG INTO THE ARHA MEMBER PORTAL FOR MORE INFORMATION REGARDING ADA COMPLIANCE.

GOVERNMENT AFFAIRS

SUMMER SESSION UPDATE: ARHA helps beat back soda tax and appointed to possible gaming commission BY DEBORAH MILLER, Partner, Milller Development Group

This is usually the time of the year when ARHA would be planning for the next legislative session slated for February 3rd, 2016. However, the special session to deal with the general fund budget that failed to pass in the 2015 Regular Session added more steam to the already dog days of summer with long days at the Alabama Statehouse to ensure that no bills pass that hurt our industry. We had just defeated many taxes and other daunting proposals such as a statewide minimum wage bill when the Governor’s proclamation hit the streets and it included a soda tax. ARHA joined the Beverage Association and dozens of organizations to protest and fight against this onerous tax. Our voices were heard loud and clear and that proposal was taken off the table. The other proposed taxes also failed to pass leaving the state in the same predicament of not enough funding for essential government services. Another bill the legislature may consider also would involve ARHA. A bill pushed by the Senate Pro tem Del Marsh seeks to allow the people to vote on whether they would like to see a statewide Educational Lottery and Class III gaming at the four locations that have already approved a Constitutional Amendment to authorize Class III gaming. Under the Marsh plan, ARHA will be a key player on a Gaming Commission. The other associations with representation on the Commission include the Sherriff’s,

Economic Development Partnership and the Alabama Bar. Headed by Coach Pat Dye, an Alabama Jobs Foundation has been formed to back the gaming/lottery proposal to support the Marsh plan.

Commission is formed, ARHA will be recognized as a group worthy of a seat on the Commission.

The polling, conducted by an extremely reputable national firm showed an overwhelming majority of citizens of Alabama, over 80% favor the right of the people to vote on an Educational Lottery, and the expansion of gaming in the four locations where a Constitutional Amendment has already passed. Further, the poll shows the favorability of the Marsh plan crosses all demographics and is essentially the same among Republicans and Democrats and those who attend church regularly and those who are more infrequent churchgoers. When asked whether they favor the Marsh plan or the solution posed by the Poarch Creek Indians to give them a monopoly the poll results are 8 to 1 for the Marsh plan.

WE MUST remain advocates by planning ahead, attending ARHA meetings and offering support to the association dedicated to YOUR ISSUES only

So what do we know thus far? WE KNOW that Governor Bentley will call yet another Special Session. WE KNOW the Alabama Legislature will be back to consider proposals that could include new revenue measures. WE KNOW the Alabama Legislature must adopt a General Fund Budget. WE KNOW that our industry can not sustain additional taxes. WE KNOW that if a Gaming

Therefore, WE MUST do the following:

WE MUST continue to spearhead bills that protect the industry and stop harmful bills WE MUST remain and become even more engaged in the political process by participating in the ARHA PAC program and maintaining a robust presence at the statehouse WE MUST develop a strong grassroots network As the football season is upon us, let’s remember some of the words of an SEC coach. Whether you are an Alabama fan, an Auburn fan, or a fan of another school, please allow me to quote Coach Saban’s remarks he delivered to an association recently. He said, “As leaders we must communicate our expectations to those around us or the blame for them not performing in a manner we want is on us.” Like championship teams, the ground work is done today for tomorrow’s victories. Our efforts today will pay dividends when the legislature returns to Montgomery this fall and in the coming years.

OCTOBER 19-20, 2015 SAVE THE DATE!

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EMV AND RESTAURANTS: BY MIKE ENGLISH

Executive Director, Product Development Heartland Payment Systems

What you need to know

WHAT IS EMV? EMV stands for the European MasterCard Visa consortium that developed new payment card technology, utilizing embedded chips. EMV is a set of standards designed to protect debit and credit cards that are accepted at the point of sale, as well as ATM transactions. The EMV standards were formed by Europay, MasterCard and Visa in 1993. EMV standards define the interaction at the physical, electrical, data and application levels between an integrated circuit (IC) chip embedded in a plastic card and the point- of-sale terminal or device that reads the IC card for processing EMV financial transactions. EMV chip-based payment cards, also known as smartcards, contain an embedded microprocessor, a type of small computer. The microprocessor chip contains the information needed to use the card for payment, and is protected by various security features. Chip cards are a more secure alternative to traditional magnetic stripe payment cards. That security is further enhanced when used in conjunction with a PIN (personal identification number). EMV’s payment security approach is based on smartcard technology that adds dynamic security data to the transaction stream, authenticating that the card is present at the point of purchase. Additionally, every card contains its own microprocessor chip, making the cards more difficult to economically counterfeit. Today, there are more than 1.5 billion EMV cards deployed in more than 120 countries on four continents. “By the end of 2015, 70% of U.S. credit cards and 41% of U.S. debit cards will be EMV-enabled, says Aite Group.”

The United States will be the last developed country to migrate to EMV.

ACCEPTING EMV AT YOUR LOCATION Restaurants are able to accept EMV cards in two ways. One method is to insert the EMV card into a card reader that is integrated in the terminal or PIN pad. This is referred to as an EMV contact transaction. Another way for merchants to accept EMV cards is contactless, where the card is tapped at the terminal or PIN pad’s contactless reader for payment acceptance. Restaurants should work closely with their point-of-sale provider to determine EMV-enabled point- of-sale options.

WHAT BENEFITS DOES EMV PROVIDE FOR MERCHANTS? Restaurants that implement an EMV solution may benefit from a reduction in card-present fraud, decreased requests for copies, and fewer disputes, as well as the unrelated but valuable opportunity to update terminals for other capabilities like Near Field Communication (NFC)2 contactless acceptance.

WHAT IS THE LIABILITY SHIFT? Visa, MasterCard, Discover and American Express have mandated liability shifts for fraudulent transactions effective October 1, 2015. Generally, liability will shift to the party using the least secure technology. For counterfeit fraud, liability will shift to a restaurant when a counterfeit mag strip from a chip card is used at

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a mag stripe terminal. The merchant has not upgraded to EMV and is therefore less secure. For lost and stolen fraud on MasterCard, Discover and American Express cards, liability will shift to restaurants when a lost or stolen “chip and PIN” card is used at a less secure terminal. For Visa, the issuer will continue to be liable for lost and stolen fraud.

IS EMV PRACTICAL FOR A RESTAURANT? At first glance, the financial value to a restaurant is questionable, as one must consider the liability shift mandated by the card brands and the volume of fraudulent cards that a small business receives today versus the cost of installing an EMV-enabled terminal. However, incidents of fraudulent cards being presented at small business locations will increase as national chains move forward with implementing EMV and criminals begin to seek out non-EMV supporting businesses. Cardholders will eventually recognize the security improvements offered by EMV, and will look to make purchases from merchants with an EMV solution. Restaurants will want to be viewed as a secure place to dine and will be influenced by the growing awareness of their customers. Additionally, EMV—specifically contactless EMV—brings NFC acceptance with it, and marketing opportunities such as the ones provided by Apple Pay, Softcard, Google or other mobile wallet programs. Eventually, NFC might be a driving force along with other point-of-touch technologies such as QR codes.

rules to authorize transactions reduces the chance for transaction interception or “man-in-themiddle” attacks. EMV cards contain a secure integrated chip that is tamper- resistant and includes a variety of hardware and software capabilities that immediately detect and react to tampering attempts, thus countering possible attacks. However, EMV does not encrypt the cardholder account number or other transaction information that hackers can monetize, thus the need for additional security. Additionally, each EMV card issued in the U.S. will still carry a magnetic stripe that could be skimmed and used fraudulently.

HEARTLAND SECURE Heartland SecureTM is a comprehensive card data security solution that combines three powerful technologies, working in unison, to provide merchants with the highest level of security available to protect against card-present data fraud. Featuring the only warranty of its kind in the payments industry, this exclusive solution is designed to provide businesses with security against point-of-sale (POS) intrusions, insider misuse, and other common sources of data fraud, by eliminating the opportunity for criminals to monetize card data. Offered to Heartland customers for no extra service fees, Heartland Secure combines:

So, in the long run, the answer is yes—EMV will be practical and beneficial for small merchants. Most new terminals being sold today have an integrated EMV contact reader, so it will be simpler for a merchant to start accepting EMV when it is time.

•

EMV electronic chip card technology to authenticate that a consumer’s card is genuine;

•

Heartland’s end-to-end encryption technology, which immediately encrypts card data as it is entered so that no one else can read it; and

There are behavioral and operational issues to overcome at QSR and fast casual concepts as well as casual and fine dining concepts. QSRs and fast casual operations will need to re-engineer their counter operations and where applicable, their drive-through outlets. Casual and fine dining establishments will have to assist servers and customers to adjust to paying at the table.

•

Tokenization technology, which replaces card data with “tokens” that can be used for returns and repeat purchases,  but are unusable by outsiders and have no value.

IS EMV SECURE? EMV is secure. EMV’s payment security approach is based on smartcard technology that adds dynamic security data to the transaction stream, rendering replay of payment transactions unpractical. Additionally, every card contains its own microprocessor chip, making the cards nearly impossible to economically counterfeit. Using EMV improves the security of payment transactions in three areas: •

Dynamic card authentication protects against counterfeit cards.

•

Cardholder verification using PIN authenticates the cardholder and protects against acceptance of lost and stolen cards.

•

Transaction authorization using issuer-defined

HOW DO END-TO-END ENCRYPTION AND TOKENIZATION WORK WITH EMV?  End-to-end encryption encrypts the cardholder information, making card data indiscernible as it enters the payment cycle. In the event of firewalls or network security being breached, hackers and criminals gain nothing of commercial value. Captured and encrypted card data cannot be used to make counterfeit cards or fraudulent phone/mail/ online purchases. Magnetic stripe swiped and EMV transactions are encrypted prior to leaving the terminal so the transactions and cardholder information is sent encrypted through your network, over the Internet, and to Heartland without being readable. Tokenization eliminates the need to refer to a customer card number for returns, voids, card on file, and recurring transactions. Both E3 and tokenization combine with EMV to provide optimal transactions.

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HOW ARE EMV TRANSACTIONS AUTHORIZED? EMV transactions can be authorized online and offline. EMV transactions authorized online are verified though an online connection from the merchant’s terminal or point-of-sale system to card issuers, via an acquirer like Heartland Payment Systems. This process is much like today’s magnetic stripe-based transactions in the U.S., where transactions are authorized online. EMV offline transactions are authorized through authentication of the card and the merchant EMV acceptance device (point of sale or terminal). MasterCard and Discover have announced their support for offline authorization, but Visa does not support offline authorization for U.S.-issued chip cards. Chances are that your transactions will be authorized in an online mode and you will not need to be concerned about offline authorization.

CUSTOMER CONVENIENT PAYMENT The following are pay-at-the-table considerations for restaurants implementing EMV:

TIP MANAGEMENT WITH EMV While EMV dual message transactions will still allow tip adjustments when used as a “chip and PIN,” restaurants will want to streamline EMV card acceptance. Operationally, the following might be a best practice: •

When an EMV card is tendered and a PIN is required, it is a best practice to include the tip during the transaction.

•

When an EMV card is tendered and signature is requested, the customer can sign the receipt and tip is added later.

•

In the event that the customer card tendered only supports PIN and the restaurant only supports “chip and signature” or no customer verification method, restaurants may ask for another form of tender.

HOW ARE CARDHOLDERS VERIFIED? Use of PIN is a common EMV cardholder verification method (CVM) that authenticates the cardholder and protects against the merchant’s acceptance of a lost or stolen card. When a cardholder’s pin is used to validate who they say they are, it is called “chip and PIN.” In addition to chip and PIN, other customer verification methods include signature verification and no customer verification, which is used today at some quick service restaurants. The U.S. will most likely migrate to “chip and choice,” which indicates PIN, signature and no customer verification method. Selection of other appropriate customer verification methods will depend on how customers pay for goods and services at your location today, speed of checkout, customer convenience, and the need for chargeback protection, as well as the restaurant’s terminal or POS system’s capabilities.

WHAT IS THE TECHNOLOGY INNOVATION PROGRAM (TIP) & DOES IT APPLY TO ME?  Effective October 2012, Visa’s TIP provides qualifying merchants—Level 1 and Level 2 merchants that process more than 1 million Visa transactions annually—PCI audit relief when 75% of the merchant’s Visa transactions originate at a dual-interface EMV chip-enabled terminal. However, all merchants must continue to comply with PCI DSS. MasterCard offers a similar program to Visa. It is important to note that whether you are a Level 1 merchant processing more than 1 million transactions a year, or a restaurant processing 10,000 transactions annually, you are still responsible for being PCI compliant.

QUESTIONS? If you have questions about EMV, lowering your cost of payments, how to better manage your store network, improving transaction security, payroll management or anything related to payment processing, please reach out to us at heartlandpaymentsystems.com/about/contactus.

1 http://www.finextra.com/news/announcement.aspx?pressreleaseid=55560 &topic=payments 2 Near Field Communication (NFC) is a short-range wireless connectivity technology (also known as ISO 18092) that provides intuitive, simple and safe communication between electronic devices.

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KANGAROO CLASSIC HITS IT OUT OF THE PARK FOR MDA

loomin’ Brands, Inc., which includes Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Steakhouse, hosted their annual softball tournament in August. The 2nd Annual Kangaroo Classic Softball Tournament to benefit local chapters of The Muscular Dystrophy Association took place at Fain Park in Montgomery.

Natalie Bickel, Joint Venture PartnerAlabama and ARHA Board Member, presents the check to MDA.

Teams formed from Outback Steakhouse locations across Alabama and the Florida Panhandle, as well as two teams from Birmingham’s Bonefish Grill and Carrabba’s Italian Grill, met to face off on and off the field. During the month of July, stores across the state raised over $26,000 through The Muscular Dystrophy Association’s “Shamrocks Against Dystrophy Program”. Funds raised through this year’s program will be allocated towards sending kids to Summer Camp. MDA Summer Camp provides a barrier free week long summer camp experience for children ages 6-17. More than 80 MDA Camps are held annually around the county. The goal was to send fifteen kids to Camp, between the fifteen stores involved, enough funds were raised to sponsor thirty-three children. Natalie Bickel, Joint Venture Partner-Alabama, said, “I am so proud of this team of folks who have worked diligently to raise funds for such a worthy and local cause, it is a direct reflection of living our principles and beliefs. Funds raised impact our community. We are so appreciative of supporters who helped us make a difference in the lives of local families.”

Team Outback Tuscaloosa took home the first place trophy for the third year in a row.

Fundraising programs like “Shamrocks Against Dystrophy” enable MDA to provide essential services for Alabama children and adults affected by muscle-wasting diseases. In addition to worldwide research seeking treatments and cures for muscular dystrophy and related muscle diseases, some of the vital resources include: clinic visits, medical care, flu shots, equipment assistance and repair, summer camp and support groups. ABOUT MDA The Muscular Dystrophy Association is the world’s leading nonprofit health agency dedicated to saving and improving the lives of anyone with muscle disease, including muscular dystrophy, amyotrophic lateral sclerosis (ALS) and other neuromuscular diseases. It does so by funding worldwide research to find treatments and cures; by providing comprehensive health care services and support to MDA families nationwide; and by rallying communities to fight back through advocacy, fundraising and local

Team Outback Hoover raised the most, over $4,500 .

engagement. Visit mda.org.

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2016 ARHA FOUNDATION

PROSTART® INVITATIONAL

Sponsorship Opportunities

FEBRUARY 6, 2016 JEFFERSON STATE COMMUNITY COLLEGE: 4600 VALLEYDALE RD, BIRMINGHAM, AL 35242 The ARHA Foundation is excited to announce our 2016 ProStart® Invitational. Students representing their high school’s ProStart® program will participate in culinary and management competitions. This one day event allows ProStart® students to showcase the skills that they have learned in the classroom. This event is made possible through the support of our industry. Please see a list of sponsorship opportunities below and sponsorship form on the opposite page.

PROSTART® GRADUATE: $2,000 • • •

Awards presentation recognition and presentation Company logo will appear on: Website | Award | Magazine | SignageRelated Email Blasts | Agendas & Schedules VIP Guest Judge Invitation: an exclusive invitation that enables your company to receive increased press by having a member of your staff serve as a judge for the culinary/management competitions.

SENIOR PROSTART® LEVEL 2: $1,500 • •

Company logo will appear on: Website | Award | Magazine | SignageRelated Email Blasts | Agendas & Schedules VIP Guest Judge Invitation: an exclusive invitation that enables your company to receive increased press by having a member of your staff serve as a judge for the culinary/management competitions.

JUNIOR PROSTART® LEVEL 1: $1,000 • •

For more information on how you can support Alabama’s ProStart® program, please contact Susan Starr at 334.244.1320 or sstarr@arhaonline.com.

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What is Prostart®? ProStart® is a nationwide, two-year program for high school students that develops the best and brightest talent into tomorrow’s industry leaders. From culinary techniques to management skills, ProStart®’s industry-driven curriculum provides real-world educational opportunities and builds practical skills and a foundation that will last a lifetime. By bringing industry and the classroom together, ProStart® gives students a platform to discover new interests and talents and opens doors for fulfilling careers. The curriculum teaches all facets of the restaurant and foodservice industry, inspires students to succeed and sets a high standard of excellence for students and the industry. ProStart® is supported and operated by the ARHA Foundation in partnership with the NRA Educational Foundation. With 15 high schools currently participating, the ProStart® program is growing fast and on its way to becoming a talent pipeline for careers in Alabama’s up and coming foodservice industry.

2016 PROSTART® INVITATIONAL SPONSORSHIP FORM Please select the level of sponsorship: q PROSTART® GRADUATE: $2,000 q SENIOR PROSTART® LEVEL 2: $1,500 q JUNIOR PROSTART® LEVEL 1: $1,000 Complete form below: FAX: 334.244.9800

| MAIL: 61B MarketPlace, Montgomery, AL 36117

Company Name: Name: Email: Address: City: State:

Zip:

Phone: Fax: Please charge my:

Visa

Card #:

MC Exp:

AMEX

Discover Signature:

FOR MORE INFORMATION: CONTACT: Susan Starr | PHONE: 334.244.1320 PROSTART® WEBSITE: www.nraef.org/ProStart

| EMAIL: sstarr@arhaonline.com

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WELCOME. New Members LODGING Springhill Suites Huntsville Downtown

Huntsville, Alabama

Marriott Resident Inn Florence

Florence, Alabama

RESTAURANTS Biscuit King

Fairhope, Alabama

Blackfinn Ameripub

Montgomery, Alabama

Buffalo Wild Wings

Cullman, Alabama

Capitol Oyster Bar

Montgomery, Alabama

Cheeburger Cheeburger

Dothan, Alabama

Dumbwaiter Restaurant

Daphne, Alabama

Firehouse Subs

Homewood, Alabama

Louie’s Chicken Fingers @ Betts Crossing Opelika, Alabama Louie’s Chicken Fingers @ Moores Mill

Auburn, Alabama

Lou’s Pizza & Wings

Jackson, Alabama

Mr. Waffle

Selma, Alabama

Rogue Tavern

Birmingham, Alabama

Roma Café

Mobile, Alabama

Tabby D’s

Andalusia, Alabama

The Filling Station

Birmingham, Alabama

The Original Rooster’s

Northport, Alabama

ALLIED MEMBERS Brown-Forman

Congratulations! Congratulations! The Original Oyster House® has once again received the 2015 TripAdvisor® Certificate of Excellence award for its Gulf Shores and Mobile Causeway locations. The award honors hospitality excellence and is given only to establishments that consistently achieve outstanding traveler reviews on TripAdvisor.

W With reduced cleanup time, lower maintenance cost, and longer equipment life, electric cooking gives you a more efﬁcient and cooler kitchen. When you add in faster preheating, faster recovery and less product shrinkage, you’ll see how electricity gives you the power to save while giving your menu the preparation it deserves. Call 1.888.430.5787 to learn more about the beneﬁts of electric cooking.

WE’RE JUST TAKING OFF. US Foods® is set to re-launch as an even stronger force in the foodservice industry. And

we’ll continue to revolutionize. In the last three years, we’ve released more than 300 new and innovative products, created the first-ever integrated industry mobile app, pioneered e-commerce and much, much more. Get on board, it’s going to be a great ride.